Regulation
Anthony Scaramucci Predicts Kamala Harris To Fire US SEC Chair Gary Gensler
Anthony Scaramucci has voiced his expectations for Vice President Kamala Harris to fire U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler.
Anthony Scaramucci Predicts Kamala To Fire US SEC Chair
On X (previously Twitter), Anthony Scaramucci shared several posts regarding Vice President Kamala Harris’s possible actions towards US SEC Chair Gary Gensler. Scaramucci thinks that if Harris becomes the Democratic presidential candidate, she will probably fire Gensler.
This prediction is made at a time when there is still a lot of discourse on the part of the Biden administration on cryptocurrency as well as the legal framework surrounding digital assets.
I’m seeing a lot of bad takes on @VP @KamalaHarris decision not to speak at the #Bitcoin Conference. “Her administration has been hostile to #Crypto, vote Trump” is the message. Trump called #Bitcoin a “scam” as recently as 2022 and his administration was also hostile to digital…
— Anthony Scaramucci (@Scaramucci) July 24, 2024
Scaramucci went on Twitter to calm the crypto community, pointing out that Harris is quite receptive to cryptocurrencies. He said that one should not view Harris’s refusal to address the Bitcoin Conference as an act of hostility towards the sector. He said that Harris is busy now especially that she is the presumptive nominee to be the Democratic candidate for the presidency but has recently proven to be open to the industry.
Moreover, he emphasized that just as Trump changed his view after calling Bitcoin a scam in 2022, Kamala has shown potential for a change by considering speaking at the Bitcoin Conference. Subsequently, Scaramucci highlighted that Kamala Harris and Senator Elizabeth Warren are not friendly. He noted:
“ Gensler will be fired and Warren will be sidelined as Financial Services Czar in a Harris admin. Let’s keep crypto bipartisan, it will be healthier for the ecosystem in the long run.”
Criticism of Biden Administration’s Crypto Policies
Some of the leading personalities in the crypto industry, such as Cameron and Tyler Winklevoss, co-founders of Gemini, have also slammed the Biden administration. They contend that the current administration is hostile to cryptocurrency and paints a picture of the administration’s actions and enforcements.
Cameron Winklevoss stated that the actions should be taken in good faith such as firing Gensler, ceasing certain enforcement actions, and stepping away from Elizabeth Warren in crypto legislation processes to win the trust of the crypto community.
The Biden-Harris Administration didn’t ignore crypto.
They didn’t laugh at crypto.
They tried to fight and kill crypto.If you operate in bad faith and want to extend a sincere olive branch, you first need to demonstrate good faith:
Fire @GaryGensler
End Operation Chokepoint…— Cameron Winklevoss (@cameron) July 24, 2024
Tyler Winklevoss was of the same opinion and called for significant and timely changes from the Democratic Party to win back the crypto community voters. He argued that if these issues are not solved, the party may lose the support of the crypto community especially in the coming elections.
Calls for Firing of SEC Chair Gary Gensler
Balaji Srinivasan, a tech entrepreneur and the former CTO of Coinbase, also commented on the matter. He claimed that Harris, who can be viewed as the head of the Democratic Party due to Biden’s position as a lame duck president, should take a number of specific measures to prove her commitment to the crypto industry.
Some of the immediate actions Srinivasan suggested included dismissing Gensler, stopping the Biden administration’s AI policies, and eliminating the unrealized capital gains tax.
That’s all just words, though.
She’s essentially the acting President as Biden is a lame duck. So as concrete actions she should immediately fire Gensler, end the Biden assault on AI, and repudiate the unrealized capital gains tax.
That’s a good start.
Anything less is fake. https://t.co/cAPSCEEDPd— Balaji (@balajis) July 24, 2024
Srinivasan said that the Democratic Party has a process to fire Gensler and pointed out that the party can do so if it thinks it is politically right. He explained that clear actions would have to be taken to change the situation and actually respond to the concerns of the crypto community.
Read Also: Bitcoin Gear Up for $80k Rally Amid Miners Recovery and Whale Buying
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
SEC requests for more time to produce documents in Coinbase case
- SEC reportedly seeks an extension to February 2025 for it to provide case documents to Coinbase.
- Coinbase, Binance and Kraken all facing SEC lawsuits.
The US Securities and Exchange Commission has filed for an extension from the court, asking for more time as it looks to provide documents related to its case against crypto exchange Coinbase. Cointelegraph reported this on Sept. 19
SEC asks for extension
Court documents filed on Sept. 18 reveal that the SEC wants the court to extend the timeline for them to furnish Coinbase with key material by four months.
The regulator filed its request at the US District Court for the Southern District of New York, and if granted, will see it have until February 2025 for the deadline to share over 133,000 documents.
SEC’s court filing comes a month to the end of the initial timeline on Oct. 18, which is when the securities watchdog was to hand over documents as part of the case’s discovery proceedings phase. According to the regulator, an extension will allow it to produce the necessary documents.
SEC has sued several crypto companies
These latest developments in the SEC vs. Coinbase lawsuit adds to several others in recent months and weeks. It includes court filings and verdicts in the regulator’s cases against crypto exchanges Binance and Kraken, which are the other major industry players in a legal battle with the SEC.
Both the courts and US lawmakers have taken issue with the SEC’s use of the term “digital asset securities’. This is part of the main allegations against crypto exchanges, with the regulator alleging securities laws violations by these firms.
The term ‘digital asset security’ does not appear anywhere in any law enacted by Congress or in any rule promulgated by the SEC or in any decision rendered by the Supreme Court. It appears nowhere in the 2 million pages of the Federal Register. If it comes from neither statute… pic.twitter.com/ucSaCzEvOU
— Rep. Ritchie Torres (@RepRitchie) September 19, 2024
In 2020, the agency sued Ripple Labs over the XRP cryptocurrency – a case that dragged for three years before a notable ruling in July 2023 declared XRP not a security. The regulator also reached a $4 billion settlement with Terraform Labs.
A judge denied Kraken’s motion to dismiss the SEC’s lawsuit agaisnt the exchange in August this year.
Regulation
New government legislation could open up sports betting in Alberta, Canada by end of this year
- Alberta’s Bill 16 will allow third-party operators in online gambling by 2025
- The province aims to capture grey market bets and boost revenue like Ontario
- Safeguards like self-exclusion and player monitoring will promote responsible gambling
Alberta is on the brink of a significant shift in its online gambling landscape. With the passage of Bill 16, the province aims to open up sports betting, iGaming, and crypto casinos to third-party operators by the end of this year.
Alberta’s move follows Ontario’s example and is designed to capture the grey market while promoting responsible gambling through updated regulations and safeguards.
Bill 16 a game-changer for Alberta’s gambling industry
In May, the Alberta government passed Bill 16, also known as the Red Tape Reduction Statutes Amendment Act, marking a monumental shift in the province’s approach to online gambling.
The bill, which received Royal Assent shortly after, allows the provincial government to oversee and regulate online gaming alongside Alberta Gaming, Liquor and Cannabis (AGLC). This opens the door for private, licensed operators to enter the Alberta market, replacing the government’s previous monopoly on legal online gambling.
Currently, the only legal option in Alberta is PlayAlberta, a platform managed by AGLC that offers casino games and sports betting. However, offshore “grey market” sites like Bet365 and Bodog continue to attract many Albertans, contributing to an unregulated market.
Ontario implemented a similar model in 2022, which generated $1.48 billion in total gaming revenue during its first year and Alberta’s government hopes to replicate this success by drawing bets away from illicit markets and boosting its own revenues.
Alberta’s expansion plans aim to address the limitations of PlayAlberta and enhance competition. The provincial government is currently in the process of consultations with industry stakeholders to determine the best path forward.
Though a specific launch date has yet to be set, Service Alberta and Red Tape Reduction Minister Dale Nally has emphasized that the government intends to act quickly once a final strategy is determined.
Regulated expansion with a focus on safety
While opening the Canadian sports betting market offers lucrative revenue opportunities, the move is not without its challenges. Alberta is mindful of the potential risks associated with an expanded gambling market, particularly in terms of problem gambling and addiction.
David Hodgins, a professor of clinical psychology at the University of Calgary and research director with the Alberta Gaming Research Institute, expressed concerns about the social impacts of having multiple operators in the province. He emphasized the importance of implementing strong safeguards to minimize harm.
To promote responsible gambling, Alberta is looking to adopt measures like self-exclusion programs that would allow individuals to ban themselves from all gambling sites within the province. Ontario is working toward such a system, and Alberta is keen to follow suit.
Minister Nally confirmed that he is interested in provincewide self-exclusion tools, as well as monitoring player behaviour to detect sudden shifts in betting patterns—another strategy aimed at curbing problem gambling.
Revenue splits between the government and private operators are also being reviewed. Ontario takes 20% of revenues from regulated gambling websites, a model Alberta is studying closely. A balance must be struck to ensure the tax rate is appealing enough to encourage operators to join Alberta’s market, while also generating significant revenue for the province.
As Alberta moves closer to an open, regulated online gambling market, it seeks to capture the benefits seen in Ontario while ensuring safety and responsible gaming practices.
With consultations nearing completion, and regulatory frameworks being refined, the province could see a new era of sports betting and iGaming by the end of 2024 or early 2025.
Regulation
Ex SEC Official Blasts US SEC Amid Rari Capital Settlement Charges
An ex-SEC official has raised concerns over the regulatory body’s approach to digital assets, coinciding with a recent settlement involving the decentralized finance (DeFi) platform, Rari Capital.
Michael Liftik, an ex SEC official and current partner at law firm Quinn Emanuel, emphasized the agency’s reluctance to issue clear guidelines for digital assets, while pursuing enforcement actions against firms in the sector. His remarks have sparked further debate on the SEC’s regulatory strategy.
Rari Capital Settlement with the SEC
The SEC has announced it had settled charges against Rari Capital and its co-founders. The DeFi platform, which offered yield-bearing services to crypto investors, faced accusations of misleading investors and engaging in unregistered broker activity.
Rari Capital’s Earn pools, marketed as being able to autonomously manage and rebalance investments, were found to require manual intervention, contradicting the firm’s claims.
The settlement also covered activities related to Rari’s Fuse pools, with the agency stating that the co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid, were involved in broker activities without proper registration. At its peak, the platform held over $1 billion in assets. Though Rari Capital and its executives neither admitted nor denied the charges, they agreed to cease breaking securities laws in the future.
Ex SEC Official Blasts Approach to Enforcement
Liftik’s criticism of the U.S. Securities and Exchange Commission’s approach resonates with broader discontent within the crypto industry. He highlighted the agency’s preference for enforcement actions over rulemaking or providing clear guidance.
In addition, the ex-SEC Official noted that the agency’s reliance on a “whack-a-mole” enforcement strategy, where firms are targeted one by one, creates a difficult operating environment for companies trying to comply with evolving rules.
A memorable line from Michael Liftik, partner at law firm @quinnemanuel and a former senior @SECGov employee, from today’s @FinancialCmte hearing:
“The SEC has refused to issue new rules or meaningful guidance relating to digital assets and, at the same time, has engaged in… https://t.co/ZTCxly1ViG
— Eleanor Terrett (@EleanorTerrett) September 18, 2024
This criticism comes as the U.S. Securities and Exchange Commission continues to scrutinize decentralized finance platforms. Over recent years, several firms, both centralized and decentralized, have been charged with securities violations, reinforcing Liftik’s argument. The agency has made it clear that labeling a platform as “decentralized” or “autonomous” does not exempt it from securities laws.
Rari Capital’s History and Hack Incident
Rari Capital’s legal troubles were compounded by a significant exploit in May 2022, when its Fuse borrowing and lending platform was hacked, leading to the theft of $80 million.
As a result, the hack forced the firm to halt new deposits and begin winding down the platform, leading to its eventual shutdown.
In the agency’s settlement, the agency acknowledged the firm’s cooperation in returning performance-based fees to affected users and its remedial efforts in response to the hack. The settlement with Rari Capital Infrastructure LLC, which took over the firm after the hack, further stipulated that the company must refrain from violating securities laws in the future.
Growing Regulatory Divide in U.S. Crypto Legislation
The U.S. Securities and Exchange Commission’s latest actions come amid an ongoing debate in Congress over crypto regulation. Recent hearings have exposed a divide among lawmakers regarding how the digital asset industry should be regulated. A memo circulating in Congress suggests that some Democratic leaders view crypto as a partisan issue, labeling it as an innovation aligned with “extreme MAGA Republicans.”
Concurrent with the ex-SEC official statements, this political divide has heightened tensions as regulators and lawmakers attempt to craft comprehensive crypto legislation. Proposals such as the FIT 21 bill, which aims to classify digital assets and modernize securities laws, remain a focal point of debate.
Critics argue that the current regulatory environment under the Biden administration is stifling innovation, while proponents of tighter regulations advocate for stronger investor protections.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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